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Magnetic Resources NL (Magnetic or the Company) is pleased to announce an Updated Mineral Resource Estimates from its deposits in the Laverton and Homeward Bound area.
HIGHLIGHTS
- This update incorporates results from recent drilling results carried out at Lady Julie North 4 (LJN4) since the last resource report announced in November 2023 (“Significant 107% Increase of Mineral Resource at Laverton Project”, ASX release 24 November 2023”).
- Upgraded Mineral Resources Estimate for the project area of:
- 24.9Mt @ 1.66g/t Au totaling 1.33Moz of gold at 0.5g/t cutoff.
- Increase of 7.7% in contained gold over the 24 November 2023 ASX Release.
- Contained gold in LJN4 has risen 11 % from 852,000oz to 948,200oz Au.
- Recent drilling has also confirmed lode continuity on and between sections and as a result, the proportion of Indicated resource category ore has increased.
- Ongoing extension drilling continues at LJN4 and is expected to result in further resource increases as the northern, central and southern parts are still open downdip.
- Results for 6 deep diamond holes are pending and one deep hole is currently being completed.
The update follows extensive down-dip drilling at LJN4.
The verification and reporting of Mineral Resources on behalf of the Company was completed by its JORC Competent Person, Mr M Edwards of Blue Cap Mining. The Mineral Resources Estimate has been prepared and reported in accordance with the 2012 Edition of the JORC Code.
Total Mineral Resources reported for the Laverton and Homeward Bound South projects is now 24.9Mt @ 1.66g/t Au at 0.5g/t cut-off totaling 1.33Moz of gold (See Table 1 below). The cutoff grade is considered appropriate for a large-scale open pit operation.
Managing Director George Sakalidis commented:
“The Lady Julie North 4 Resource has been the key focus for recent drilling, with multiple stacked lodes identified with a number of thick intersections that have still not been closed off at depth. The LJN4 deposit keeps on adding ounces, increasing from 204,000oz in Feb 2023 to 948,000oz in this report.
The northern part of LJN4 is continuous over 300m down dip. The central part is continuous down dip to 550 and the southern part is continuous down dip to 400m. Note in all these cases LJN4 is still open further down dip and augers well for future drilling and resource update, Currently, there are results for 6 deep diamond holes pending with one deep diamond hole in progress.
Following the completion of all baseline background studies, our attention over recent months has turned to completing a Pre-Feasibility, which is being prepared on the basis of the resource, which was defined at November 2023. While this resource estimate does not include the benefit of the recent drilling results at LJN4, this latest drill program was deep and widely spaced and should not have materially changed the outcomes of the project economics.
Preparations are also underway for the development of a Mining Proposal. One mining lease application has already been lodged over LJN4 with others following the lodgement of the Mining Proposal.”
The Table below summarises the updated Total Mineral Resource at a 0.5g/t Au cutoff (Table 1), with Table 2 providing details of the major resources. Details for the smaller resources which have not changed can be found in the 3 February 2023 ASX release.
Table 1. Total Mineral Resource at 0.5 g/t Au Cutoff
Figure 1. Overview of Magnetic’s Laverton and Homeward Bound South Resources
Table 2. Resource details by Main Deposits @ 0.5g/t Au cutoff
Drilling has concentrated on LJN4 over the last 4 months, which are shown in Table 2 and are further summarised below:
LJN4 Resource
The LJN4 (Indicated and Inferred) Resource of 15.3 Mt at 1.92 g/t for 948,200 oz has a present footprint of 750m x 500m (Figure 4) and remains open down dip to the east. Recent drilling results have confirmed the previous interpretation of a moderately dipping, multi-lode structure. Where the drilling encounters breccia, the mineralised structure expands considerably. This is particularly the case below 150m depth. More recent step out drilling has encountered large breccia zones which auger well for continuation of mineralisation at depth. Additional drilling is being planned to further test these expanded breccia zones.
From November 2023 to February 2024, some 29 DD/RC holes were completed for 10,741m with the deepest hole reaching 585.9mRL (500m below surface). A further 6 DD holes for 869m were drilled for geotechnical follow up. Exploration drilling is continuing and results are due for 6 deep diamond holes and with one deep diamond hole being completed.
Some 62% of the resource is classified in the Indicated Category – the increase over the November 2023 report is linked to the excellent continuity evidenced from recent drilling.
Click here for the full ASX Release
This article includes content from Magnetic Resources NL, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
MAU:AU
Magnetic Resources NL
Overview
Magnetic Resources (ASX:MAU) is an Australian company, developing a portfolio of significant gold projects in the established mining province, Laverton region, in Western Australia.
The company owns a 100-percent interest in the Hawks Nest and Lady Julie projects in Laverton, the Homeward Bound South project in Leonora, and the Benjabbering project in Julimar. The main deposits include Hawks Nest 9 (HN9), Lady Julie Central (LJC), Lady Julie North 4 (LJN4), Mount Jumbo and Homeward Bound South, which are all located in an area with well-endowed regional infrastructure, including three processing plants within 10 to 35 kilometres. These plants are owned by well-known operators including Goldfields Genesis/Dacian; Anglo-Ashanti; and Genesis/Dacian.
The projects’ proximity to these existing processing facilities gives enough options to MAU for toll processing without having to invest millions of dollars in constructing its own processing plant.
Several large deposits such as Wallaby, Sunrise Dam and Jupiter Gold are in this jurisdiction. The company’s projects are adjacent to some of these world-class deposits. The Mt Jumbo and Hawks Nest tenements are only 15 kilometres north of the Wallaby deposit. At both HN9 and Lady Julie, Magnetic Resources had identified multiple thickened stacked lodes near-surface, which have some similarities to Wallaby and Sunrise Dam.
LJN4, a key focus for the Laverton project, hosts thick breccia and silica pyrite zones up to 50 metres thick, which are also prevalent in Anglo Ashanti’s world-class Sunrise Dam deposit, both parallel to near-surface breccia zones and vertical mineralization going downwards into several of their deposits. The Mau breccia zones often carry higher grades and are now being extended by new drilling at depth and further to the east and northeast, potentially growing the LJN4 resource.
In November 2023, the company announced a significant increase in the mineral resource estimates. The deposits in the Laverton and Homeward Bound area have seen a significant 107-percent increase over the last report in February 2023. The updated combined mineral resources estimate for the whole project area stands at 22.7 million tonnes (Mt) @ 1.69 grams per ton (g/t) gold totaling 1.24 million ounces (Moz) of gold at 0.5 g/t cutoff.
LJN4 is now, by far, the largest resource in the project area, as its contained gold rose from 204,000 oz to 852,000 oz, a 317-percent increase. Extension drilling continues and is expected to result in further resource increases.
The significance of LJN4’s gold resource has not gone unnoticed, as research firm Argonaut has called it a ‘sleeping giant,’ noting recent drilling at LJN4 “indicates a significant discovery unfolding in the Laverton region.” If MAU can replicate the recent drilling intercepts, the next resource update at LNJ4 could easily make it a 1-Moz deposit. This will position LJN4 as one of the best undeveloped gold assets in the Laverton region.
Company Highlights
- Magnetic Resources (MAU) is an Australian company focused on gold development projects in Western Australia.
- The company owns a 100-percent-interest in the Hawks Nest and Lady Julie projects in Laverton, the Homeward Bound South project in Leonora, and the Benjabbering project in Julimar.
- MAU’s large tenement positions in the Leonora and Laverton districts of Western Australia, are near numerous large deposits with existing mining operations and good infrastructure.
- The presence of three processing plants close to MAU’s Laverton deposits provides scope for toll processing.
- In November 2023, the company announced a 107-percent increase in the resource estimate for Laverton and Homeward Bound South deposits. The revised resource stands at 22.7 Mt @ 1.69 g/t gold totaling 1.24 Moz of gold at 0.5 g/t cutoff.
- For the Laverton project deposits - Lady Julie North 4,Lady Julie Central and Hawks Nest 9 - early work programs, including project environmental, heritage and technical background studies, are close to completion. The aim is to submit a mining proposal in January 2024.
- In October 2023, the company announced the completion of a AU$4.8-million private placement. The company is now fully funded with AU$7 million cash to aggressively advance to the next stage of development.
- The company’s highly experienced senior leadership team has a proven track record to capitalize on the high resource potential of its projects.
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An Exciting Gold Development Play in Western Australia
High-Grade Gold Confirmed at Bronzewing South
- Partial results received from the diamond tail of drill-hole BWSRC081 with the visible gold zone returning 15.5g/t Au over 0.48m from 416.5m. This high- grade zone is reported within a broader intercept of:
- 8.95m at 1.32g/t Au from 414m, including:
- 0.48m at 15.5g/t Au from 416.5m; and
- 0.55m at 3.52g/t Au from 422.4m.
- 8.95m at 1.32g/t Au from 414m, including:
- Follow-up drilling along strike from these intercepts is scheduled to commence in the coming days to define the extent of the south-trending zone of gold mineralisation with a diamond tail of drill-hole BWSRCD086.
- Drill results indicate the inadequacy of historical air-core drill testing with a significant search space now open on the boundary with the historical Bronzewing Mining Lease.
- Diamond drilling at the Central Target, located ~1.7km to the south of the Eastern Target and within the same structural corridor, has encountered zones of intense locally massive quartz veining associated with brecciation below historical Hammer gold drilling anomalies of:
- 20m at 1.5g/t Au from 120m in drill-hole BWSRC0037, including:
- 8m at 2.4g/t Au from 120m; and
- 4m at 3.9g/t Au from 120m.1
- 20m at 1.5g/t Au from 120m in drill-hole BWSRC0037, including:
- Assay results from the remaining program will be progressively released in the coming weeks.
Figure 1. Photo of massive quartz carbonate veining intersected in drill-hole BWSRCD082 diamond tail at Hammer’s Central Target Zone (213m to 221.5m).
Hammer’s Managing Director, Daniel Thomas, said:
“The confirmation of high-grade gold mineralisation at Bronzewing South is a significant step in our search for an economically viable gold target at our Yandal Gold Project. High-grade mineralisation can be traced with multiple intercepts to the north of our project area, with the mineralised structure interpreted to extend for hundreds of metres.
“We will now look to test this structure approximately 100m further south on our project area. We are very much looking forward to follow-up drilling at the Eastern Target, as we enter a zone without any previous drilling coverage.
“The team is encouraged by the observations in recent drilling at the Central Target and the potential for this corridor to be connected to the Eastern Target drilling some 1.7km to the north. This corridor is largely untested below the ineffectual air-core drilling and, with a prominent shear zone interpreted to connect these targets, it is of high interest to the team in our search for a significant gold discovery.”
Figure 2. Plan view of the Bronzewing South tenement EPM36/854, showing Bronzewing orebodies on Northern Star Resources mining lease, historical Hammer RC drilling intercepts and the structural corridor of interest containing Hammer’s Central and Eastern Target Zones (refer to ASX announcement 9 November 2020).
Click here for the full ASX Release
This article includes content from Hammer Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
